This is useful news for those investing in Mutual Funds. Actually, the mode of payment for investment in mutual funds is going to change from April 1. Till now, payment was made for investment in mutual funds through cheque, bank draft or any other physical medium. But from 1st April this will not happen.
Because mutual fund transaction aggregation portal MF Utilities is going to stop the facility of payment for investments through checks and DDs from March 31, 2022. After its implementation, investors will be left with the option of internet banking and UPI payment to pay for investments in mutual funds.
Payment will not be done by NEFT and RTGS also – Apart from checks and DDs, mutual fund transaction aggregation portal MF Utilities has also banned the mode of investing in mutual funds through NEFT and RTGS.
In this regard, MF Utilities said that, after the update of the system, now the old method will no longer be able to pay for investments in mutual funds. Let us tell you that till now payment for investment has been done through the options like cheque, draft, transfer letters, banker’s cheque, pay order etc.
How much will the impact on customers – Experts say that due to the Corona epidemic, the mode of payment for investment in mutual funds has changed long ago. According to experts, due to social distancing, most of the customers are paying for investments through UPI and net banking. Hence closure of Cheque, DD, RTGS and NEFT options will not have much impact.